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Why Japan's government is looking to curb its adorable kei car market

Each region around the world has its stereotypical vehicle. The US has the pickup and Europe the five-door hatchback; but in Japan, the kei car reigns supreme. These tiny cars are limited to just 660cc of displacement but they've also come with lower taxes to make them more affordable. To make of the most of their small size, they've often had quite boxy styling like the Honda N-One shown above, and because they're Japanese, they've often had quirky names like the Nissan Dayz Roox. However, if the Japanese government has its way, the future popularity of these little guys might be in jeopardy. The problem facing them is that Japan is an island both literally and figuratively. After World War II, the Japanese government created the class as a way to make car ownership more accessible. The tiny engines generally meant better fuel economy to deal with the nation's expensive gas, and the tax benefits also helped. It's made the segment hugely popular even today, with kei cars making up roughly 40 percent of the nation's new cars sales last year, according to The New York Times. The downside is that these models are almost never exported because they aren't as attractive to buyers elsewhere (if indeed they even meet overseas regulations). So if an automaker ends up with a popular kei model, it can't really market it elsewhere. The government now sees that as a threat to the domestic auto industry. It believes that every yen invested into kei development is wasted, and the production takes up needed capacity at auto factories. The state would much rather automakers create exportable models. To do this, it's trying to make the little cars less attractive to buy, and thus, less attractive to build. The authorities recently increased taxes on kei cars by 50 percent to narrow the difference between standard cars, according to the NYT. If kei cars do lose popularity, it could open the market up to greater competition from foreign automakers. Several companies complained about the little cars stranglehold on the Japanese market last year, but since then, imported car sales there have shown some growth thanks to the improving economy. Featured Gallery 2013 Honda N-One View 20 Photos News Source: The New York TimesImage Credit: Honda Government/Legal Honda Nissan JDM kei kei car

Honda reveals three new turbo VTEC engines, including Civic Type R 2.0L

It's fair to say that in recent years, Honda has been viewed as a laggard when it comes to engine and gearbox development, seemingly missing the boat on direct-injection, forced-induction and high gear-count transmissions, among other things. But under its Earth Dreams banner, the Japanese automaker is showing new vigor, with the latest proof being this trio of just-announced powerplants.
Measuring 1.0-liters, 1.5-liters and 2.0-liters in displacement, this array of three- and four-cylinder engines boasts turbocharging and direct-injection along with the latest iteration of Honda's famed VTEC variable valve timing hardware. "Most suitable for small-to-medium-sized vehicles," the largest engine is said to be good for more than 276 horsepower and will slot into the eagerly awaited Civic Type R, iconic red valve cover and all.
Unfortunately, few other details about the hot Civic's engine or any of the others are being made public at this time, and there's no official word about the engines coming to North American in the Type R or any other model. Given that all the engines are complaint with stringent Euro 6 emissions standards, they figure to be clean enough, and Honda says that these have been developed as global powerplants, so we'd be shocked if they didn't come ashore in new or updated products over the next few years... even if they leave the CTR on the boat.

Honda invests $215M in Ohio Earth Dreams production

Honda has announced a $215 million investment in a pair of its Ohio operations, taking its total tally for North American operations up to $2.7 billion in three years. The announcement was made at the 2013 Center For Automotive Research Management Briefing Seminars in Traverse City.
$180 million of the investment is earmarked for Honda's Anna, OH engine plant. The money will allow the facility to increase its aluminum die casting and increase production of Honda's Earth Dreams Technology engines. Think of Earth Dreams as sort of like Mazda's Skyactiv line, only ED is limited to a new line of engines, rather than a full suite of automotive components. Anna will also be getting a new technical center to train engineers, techs, and line workers on powertrain technology.
The remaining $35 million is slated for Honda's main Ohio operations in Marysville. A 160,000-square-foot facility will be constructed near Honda's current properties, which will house another technical training center to focus on automotive manufacturing. The new building will also house Honda's North American Services group, as well as a new heritage center.